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It already helps if you have a structured approach for your procurement and to keep your options open. Working with a local consultant or agency may help to identify more potential suppliers and to get the products that you just bought accross the border to their destination.
Vietnam, located in Southeast Asia, is known for exporting a variety of products that highlight its economic growth and industrial diversification. The country is renowned for exporting textiles and apparel, including garments made of cotton and synthetic fibers, which are major contributors to its manufacturing sector. Vietnam also exports electronics and electrical appliances, such as smartphones, computers, and components, reflecting its expanding tech manufacturing capabilities.
Wages in Vietnam are generally lower compared to many other countries, making it an attractive destination for outsourcing and manufacturing. This competitive advantage has fueled the growth of industries like electronics assembly, footwear production, and furniture manufacturing. The cost of living in major cities like Ho Chi Minh City and Hanoi is moderate, which further enhances Vietnam’s appeal for outsourcing.
Vietnam’s outsourcing options are mainly in industries such as information technology (IT), business process outsourcing (BPO), and manufacturing. This includes services like software development, customer support, and assembly operations, benefiting from its skilled workforce and competitive operational costs.
Vietnam is also known for its agricultural exports, including rice, coffee, and seafood, which are staples of its economy. The country has a growing presence in renewable energy, particularly in solar power, and is increasingly exporting related technologies and components.
The best preparation for doing business in any country is visiting it. This way you can experience the culture, check the shops and build your network.
Where it comes to hotels, research shows that if you check these platforms, in 80% of the cases you have the lowest room rates.
If you take your sourcing step by step, then it can’t go wrong.
Step 1
Try to identify in total 6 to 10 possible suppliers and check their websites. Approach them with a general request to see whether they have the products or services you need.
Step 2
Submit your requirements to a group of three to five selected suppliers and ensure you get the right comparable quotations to make a choice. Negotiate with one or two of them to get the best result.
Step 3
Now start collaborating, making sure you have an efficient ordering process and limited risks where it comes to quality control and shipping the products.
First of all you may have to pay import duties or settle VAT. There are certain thresholds for both of these charges, e.g. while importing in the EU you don’t have to pay import duties on any shipment worth less than € 150.
There may also be non-financial bariers, like certifications or approvals to be obtained. Especially for food, cosmetics or medicine this may be the case. Check this in advance, even before you invest in your marketing.
In developing or more developed countries also labour costs are getting higher, so there is no real bargain any more. On the other hand, the more developed a country is, the better the certainty for deliveries and the more focus there is on quality.
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